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Subscription models underpin LeasePlan strategy

LeasePlan is placing increasing focus on usership and subscription models as it announces global fleet and profit growth for 2017.

LeasePlan logo

LeasePlan’s strategy is driven by new subscription models for new and used cars.

Forming part of its ‘any car, anytime, anywhere’ focus, the plans will see the leasing giant continue to invest in the Car-as-a-Service (CaaS) business for new cars while the firm is also launching its CarNext.com business to introduce CaaS for used cars.

Aimed at both the B2C and B2B markets, CarNext.com will focus on the three to four-year-old car market, offering customers a digital marketplace to buy, lease or subscribe to used cars while bringing an additional route to market for LeasePlan’s ex-fleet cars, which number around 250,000 a year in Europe. The firm added that the service would ultimately be expanded to ‘trusted’ third-party owners of high quality used cars.

CarNext.com will operate primarily through an online platform, supported by a pan-European network of up to 50 delivery stores.

LeasePlan also announced a 10% rise in 2017 net profits to €467m (£416m) while its serviced fleet grew 5.5% to 1.7 million cars.

Commenting on the firm’s subscription plans, CEO Tex Gunning said: “There is a clear megatrend from ownership to usership and subscription models taking place in both the new and high-quality used car markets. Increasingly, our customers – whether they are corporate, SMEs or private individuals – would prefer a ‘Car-as-a-Service’ with no strings attached in terms of car type or duration. They just want ‘any car, anytime, anywhere’.

LeasePlan also said it would continue to drive LeasePlan digital programme – including expanding the team – as well its ‘The Power of One LeasePlan’ operational improvement programme, which launched in 2017 to implement best practices and leverage scale along all elements of the value chain and across all LeasePlan countries. This is targeting a €370m (£329m) profit before tax uplift in the medium term compared to the 2016 baseline, with €130m (£116m) having been realised in 2017.

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.